Brookstone Capital Management lawsuits include a dismissed fiduciary-duty class action in Illinois federal court, an active 2025 investor suit in New York federal court, and a now-closed commercial arbitration dispute the firm itself brought against a competitor. Neither BCM nor its founder, Dean Zayed, carries any disclosed regulatory actions, customer complaints, or disciplinary events on their public FINRA and SEC records.1SEC IAPD. Nadim Dean Zayed – Individual Summary2SEC IAPD. Brookstone Capital Management LLC – Firm Summary
The Portell Class Action Over the KZSIX Fund
The most prominent case against BCM was a putative class action filed by clients who alleged the firm and Dean Zayed breached their fiduciary duties through the Kaizen Hedged Premium Spreads Fund (ticker KZSIX). The case was originally filed in DuPage County Circuit Court in Illinois, removed to the U.S. District Court for the Northern District of Illinois, and captioned Portell v. Zayed, No. 18-CV-05414.3GovInfo. Portell v. Zayed, No. 18-CV-05414
The plaintiffs had been invested in the ZEGA High-Probability Options Strategy (HiPOS). According to the complaint, in July 2015 Zayed and BCM announced a plan to transfer those client investments into the newly created KZSIX fund unless clients affirmatively opted out. Zayed owned at least 95% of Kaizen Advisory, the entity behind KZSIX, while serving as sole beneficial owner and CEO of BCM.4vLex. Portell v. Zayed, 375 F.Supp.3d 1025
The complaint alleged undisclosed conflicts of interest from Zayed’s dual ownership; double-dipping on fees, with advisory fees collected through both BCM and Kaizen and trading expenses shifted onto fund investors; misrepresentation of risk, in that KZSIX was presented as a lower-risk, hedged alternative to HiPOS when it was actually more susceptible to market volatility; and a lack of informed consent, with clients allegedly moved into the new fund without affirmative agreement and used as “guinea pigs” before KZSIX was marketed to new investors. Plaintiffs claimed millions of dollars in losses and fees exceeding industry norms.4vLex. Portell v. Zayed, 375 F.Supp.3d 1025
Eight of the nine original plaintiffs voluntarily dismissed their claims without prejudice, leaving Theresa Portell as the sole remaining plaintiff.3GovInfo. Portell v. Zayed, No. 18-CV-05414 On March 21, 2019, Judge John J. Tharp Jr. ruled the case was precluded by the Securities Litigation Uniform Standards Act (SLUSA), a federal law that bars certain state-law class actions involving alleged misrepresentations in connection with the purchase or sale of covered securities. The court denied Portell’s motion to remand and dismissed the class action with prejudice, citing Seventh Circuit precedent requiring such dismissals to prevent forum manipulation. The ruling noted that Portell was not necessarily prevented from pursuing her claims as an individual.5CaseMine. Portell v. Zayed, No. 18-CV-05414 – Memorandum Opinion and Order The available record does not indicate whether any former plaintiff later refiled individually.
DiRico v. Brookstone Capital Management (Pending)
A newer suit, DiRico et al v. Brookstone Capital Management, LLC et al, No. 7:25-cv-01052, was filed on February 5, 2025, in the U.S. District Court for the Southern District of New York before Judge Philip M. Halpern. The plaintiffs are Julie DiRico, Dr. Martin Hyman, Hem Nalini Singh, and Jagnarine Singh.6PACER Monitor. DiRico et al v. Brookstone Capital Management, LLC et al
The proceeding has so far turned on whether the plaintiffs agreed to arbitrate. BCM has argued that each plaintiff signed an Investment Policy Statement containing a mandatory arbitration clause. On March 18, 2026, the court granted BCM’s motion to compel arbitration as to Dr. Hyman but found no evidence binding the other three plaintiffs to the clause.7Justia. DiRico v. Brookstone Capital Management – Order BCM submitted additional documentation to try to bind DiRico and Hem Nalini Singh, but the court rejected that evidence in a March 30, 2026 order and granted BCM leave to renew its motion only as to Jagnarine Singh. As of late April 2026, DiRico filed opposition papers and BCM filed a reply; the case remains active and awaits a ruling on the renewed motion.6PACER Monitor. DiRico et al v. Brookstone Capital Management, LLC et al
Brookstone v. Swan Global Investments
BCM has also appeared as a plaintiff. In February 2018, Brookstone Capital Management and Dean Zayed filed a petition in the U.S. District Court for the District of Colorado to confirm a “Phase 1” arbitration award against Swan Global Investments, LLC. The underlying dispute ran through multi-phase arbitration under the American Arbitration Association’s commercial rules; the specific claims and dollar amounts were not disclosed in the court docket. The parties proceeded through Phase 2 arbitration hearings in December 2018, and the petitioners later filed an unopposed request to dismiss. The court dismissed the case with prejudice on June 3, 2019, with each side bearing its own costs.8CourtListener. Brookstone Capital Management, LLC v. Swan Global Investments, LLC
Regulatory Record and Disclosed Conflicts
Zayed’s Investment Adviser Public Disclosure report lists zero disclosures, a category that would include criminal charges, regulatory investigations, customer disputes, and financial items such as bankruptcies.1SEC IAPD. Nadim Dean Zayed – Individual Summary BCM’s SEC registration page likewise shows no disclosure items.2SEC IAPD. Brookstone Capital Management LLC – Firm Summary
BCM’s most recent Form ADV brochure, dated October 2025, does disclose several conflicts of interest. The firm invests client assets in affiliated mutual funds and ETFs managed by subsidiary entities, from which it earns additional internal management fees on top of its advisory fee. BCM advisors also receive commissions for recommending fixed index annuities and life insurance products, and the firm refers clients to the law firm Perkins & Zayed, where Dean Zayed is a principal.9Brookstone Capital Management. BCM Form ADV Part 2A Disclosure Brochure
Not the Same Firm as Brookstone Securities
Searches on Brookstone-related litigation sometimes return results for Brookstone Securities Inc., a separate firm with no connection to BCM. Brookstone Securities was an independent broker-dealer headquartered in Lakeland, Florida, that FINRA fined $1 million in 2012 over the fraudulent sale of risky collateralized mortgage obligations to unsophisticated, elderly investors between 2005 and 2007. Its CEO, Antony Turbeville, and broker Christopher Kline were ordered to pay more than $1.6 million in restitution and were barred from the securities industry, and the firm ceased operations in June 2012.10ThinkAdvisor. FINRA Says Brookstone Preyed on Elderly With Unsuitable CMOs That firm is unrelated to Brookstone Capital Management of Wheaton, Illinois.